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SSEECCOONNDDAARRYY 
MMAARRKKEETTSS 
pprreesseenntteedd bbyy,, 
SSUUDDHHEEEESSHH KKKKVV 
GGccttee,,tthhyyccaauudd
Markets (1)
CCOONNTTEENNTTSS 
FFUUNNCCTT聴聴OONN OOFF SSEECCOONNDDAARRYY MMAARRKKEETTSS 
Trading Locations 
Market Structures 
Perfect Markets
There are aaccttuuaallllyy ttwwoo lleevveellss ooff 
tthhee ccaappiittaall mmaarrkkeettss iinn wwhhiicchh 
iinnvveessttoorrss ppaarrttiicciippaattee:: 
Primary Markets 
Secondary Markets
SSEECCOONNDDAARRYY 
MMAARRKKEETT 
Secondary market means market for 
purchase and sale of second hand 
securities. 
Securities once sold can be resold to 
others through stock brokers. 
Also called After Market.
It is a organized market where 
securities issued by- Companies, 
Government, Semi Government 
Institutions and Public bodies are 
traded. 
These securities are traded in 
the stock exchange where they 
are listed.
SSEECCOONNDDAARRYY MMAARRKKEETT IINNCCLLUUDDEESS::-- 
Stock exchanges 
BSE (Sensex) NSE (Nifty)
OOTTCCEEII 
(Over The Counter exchange 
of India)
SSHHCCIILL 
(StoCk HoLdIng 
CorporatIon IndIa Ltd)
LLOONNDDOONN IINNTTEERRNNAATTIIOONNAALL SSTTOOCCKK 
EEXXCCHHAANNGGEE
FFRRAANNKKFFUURRTT SSTTOOCCKK EEXXCCHHAANNGGEE
PPAARRIISS BBOOUURRSSEE
TTOOKKYYOO SSTTOOCCKK EEXXCCHHAANNGGEE
IISSTTAANNBBUULL SSTTOOCCKK EEXXCCHHAANNGGEE
FFUUNNCCTTIIOONN OOFF SSEECCOONNDDAARRYY 
MMAARRKKEETT 
 Capital Formation:  
By mobilizing the savings of the 
public to productive purposes, 
facilities in capital formation 
and there by economic growth.
Security Price Formation:  
By quoting the share price in 
the secondary market the 
real worth of a security can 
be know to the investors.
Liquidity to Investment:- 
Secondary market provides ready 
and continuous market for listed 
securities, hence investors can 
enjoy liquidity to the investors.
Securities ttrraaddeedd iinn 
tthhee SSeeccoonnddaarryy MMaarrkkeett 
 Government Securities:- 
Includes securities of Central 
Government, State 
Government, State Corporation 
and Semi Government 
Authority like Port trust, 
Municipal corporation etc.
Corporate Securities:- 
Corporate or Industrial 
Securities includes equity 
shares, preference share and 
debentures of different types.
TThhaannkkss....

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